VelocityShares 2x Long VIX Short Term Exchange Notes

The Securities and Exchange Commission (SEC) is looking into the VelocityShares 2x Long VIX Short Term Exchange Note, managed by Credit Suisse Group AG, which had about $700 million in assets before the decline, according to an article in the Wall Street Journal. The Massachusetts’s securities regulator and the U.S. Securities and Exchange Commission (SEC) are investigating the ETN's loss of nearly 60% of it's value.

According to the Wall Street Journal, Secretary of the Commonwealth, William Galvin, submitted a written request on March 23 to Credit Suisse for information and documents related to every purchase of shares in the VelocityShares 2x Long VIX Short Term Exchange note from Feb. 20 to March 23.

This comes amid concern over trading in the ETN. The Credit Suisse ETN, which is designed to track stock-market volatility, plunged even though market volatility was little changed.

According to WSJ, the confusion underscores the risky nature of exchange-traded notes. While hedge funds are usually the most active traders of the securities, the notes have become more popular with smaller investors, in part because they are low cost and easy to trade.

If you experienced financial losses due to your broker/dealer's recommendation of VelocityShares 2x Long VIX Short Term Exchange Notes, call Soreide Law Group for a free consultation on how to potentially recover your losses at: 888-760-6552, or you may visit our website and complete the online form at: https://www.securitieslawyer.com.